Additional information:
1. Dividends declared and paid were $3,000.
2. During the year equipment was sold for $8,500 cash. This equipment cost $18,000 originally
and had a book value of $8,500 at the time of sale.
3. All depreciation expense is in the selling expense category.
4. All sales and purchases are on account.

Attachments

Solution Preview

For the ratios, I attached a word document so that you have the formula for calculating the ratios.

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Solution Summary

The solution includes an excel sheet of the statement of cash flows for Frank B. Robinson Company as well as calculations of the following ratios:
(1) Current cash debt coverage ratio.
(2) Cash return on sales ratio.
(3) Cash debt coverage ratio.